The State of Washington Launches a Revenue Based Financing Business

The State of Washington is getting in to the revenue based financing business. Coinciding with Broker Fair 2025 on May 19th, the Washington State Department of Commerce announced it was launching the Revenue-Based Financing Fund (RBF) loan program for small businesses. Its administered by Grow America.

“This is one of the most innovative loan programs we’ve ever launched,” said Commerce Director Joe Nguyễn. “It’s not a typical business loan. It’s a Pay-As-You-Earn loan that works with the reality of running a small business. Instead of fixed monthly payments, businesses repay based on what they actually make. So if sales slow down, payments stay low. If business picks up, payments adjust. It’s flexible, it’s fair, and it’s the kind of practical solution we need to support small businesses across Washington.”

$13M in funding has been allocated to this program so far. Funding works similar to a business loan from Square or PayPal where there is technically a term and minimum monthly payment required, but the repayment system is based on a percentage of sales, namely 20% of them.

“At Grow America, we’re excited to launch the Washington Revenue-Based Financing Fund,” said Daniel Marsh III, Grow America president. “This program offers flexible capital, empowering Washington’s small businesses, especially entrepreneurs, to scale operations and achieve sustainable success.”

“Revenue-based financing provides you with flexible upfront capital, and its payback terms are customized to your cash flow and fluctuate based on your revenue,” the marketing materials state. “It’s ideal for small businesses that are seasonal, may not have a consistent income, or require an alternative to a traditional loan.”